Why Is It Better to Invest in Ethereum Than in Other Cryptocurrencies?

No more than a year ago, the word “cryptocurrency” was unknown to most. Even those who were aware of it, didn’t really recognize cryptocurrencies as high-potential investments. Now, everything has changed. In 2017, the sphere had exploded by an enormous amount of newcomers who managed to make easy money through sharp price increases of the most popular cryptocurrencies. Every Bitcoin exchange was literally overfilled with new users. An inflow of inexperienced market participants resulted in high volatility of almost all cryptocurrencies, which in its turn provoked a great recession of the prices. So, the number one question right now is: What’s the best investment choice in 2018? As you may have guessed, the answer is in the article title. So, for now, the goal is to let you know, why it is better to invest in Ethereum than any other cryptocurrencies.

Why Is It Better to Invest in Ethereum Than in Other Cryptocurrencies


Why Is It Better to Invest in Ethereum Than in Other Cryptocurrencies?

First off, let’s set the record straight: What is Ethereum?

We won’t linger here for too long: this part is brief, though informative. Ethereum’s essential difference from Bitcoin and other cryptocurrencies is a much wider applicability. Ethereum is not just a network for providing transactions, it’s a platform for decentralized applications (dApps) with the internal Ether token (the cryptocurrency you buy on exchanges). So, in plain language, the network of Ethereum is a large decentralized computer, which runs programs and processes transactions.

Why Is It Better to Invest in Ethereum Than in Other Cryptocurrencies?

Why Is Ethereum a Good Investment in 2018?

Because it’s not only a cryptocurrency. Here’s what it’s all about.

In 2017, the notion of cryptocurrency was widely discovered. You could say, it was the time of the largest hype. The highest profits were attained by those who joined the community before the strong inflow of newcomers. It doesn’t mean that cryptocurrencies have already had enough, vice versa, they are expected to break new grounds in 2018. But, in the forthcoming year, there’s another notion to be broadly exposed. It’s already here, but not yet as widespread as it’s going to be. We’re talking about decentralized applications.

Why Do You Need Programs Running on a Decentralized Ledger, Rather Than Those on a Conventional Server?

What every program does is it makes everything more autonomous than it was before. Let’s consider YouTube as this ‘program’: you have no separate TV channels with their own working schemes, TV providers with their offers, etc. With YouTube there’s just:-

  • Video platform (YouTube, itself);
  • ‘Content-makers’ (Those who make videos);
  • Advertisers (No comments… That’s where all the money comes from);
  • End-users (Us).

Everything is absolutely plain and easy, however, it will become even more —  with decentralized technologies, because they would eliminate the authority of YouTube as it is (considering this specific example). Imagine, a decentralized video platform, where there’s no central authority or even server. It runs autonomously. That said, ‘content makers’ still make money, advertisers still advertise, while end-users still watch the video footage. The lack of central authority significantly cheapens the usage of the platform and so far as it goes, makes the network indestructible.

This is what the functionality of Ethereum will be able to offer in the nearest future. Right now, dApps have only just begun unleashing their true potential. And, according to many experts’ opinion, there’s no doubt that 2018 will become the year of blockchain-based applications. While Ethereum is, in fact, the leading blockchain platform, needless to say, that it was the first of its kind. If you draw a parallel with Bitcoin — the pioneer in cryptocurrency, there will be no question as to Ethereum’s success in 2018.

Switch to Pos: What’s That and Why Is It Good for Ethereum?

(Proof of Stake) is an alternative to POW (Proof of Work) algorithm. With POS, miners (those who work on network maintenance) don’t need special hardware in order to validate transactions; they are required to hold a ‘stake’ — a specific amount of coins that’s enough to serve as ‘caution money’, confirming their honest word of whether transactions are valid or not.

Ethereum is currently operating on the POW algorithm; however with their Casper update, the team plans to make a seamless shift to POS during 2018. What does this mean to a regular Ethereum holder? Almost nothing, accept the fact that with the POS switch, there are all the premises that Ethereum will skyrocket to surprising heights. Here’s why…

It was already said that in order to ‘mine’ Ethereum once it’s switched to POS, you won’t need to invest your money in GPUs or other hardware. You will need to hold a stack of coins. Vitalik Buterin, the inventor of Ethereum, said that one who wishes to become a stakeholder should hold around 1 000 ETH. If 1 ETH costs $1,000, it means that you will need a million dollar investment in Ether in order to hold a stake. Now, imagine what happens with the price, once tens of thousands of investors put in their million dollar capital in Ethereum.

So, Why Is It Better Than Other Cryptocurrencies?

From the perspective of investing, Ethereum shows great results in both: short and long-term.

Short-term

If you look at Ether’s price performance (especially in 2017), you will see that its ‘pumps and dumps’ occur in a relatively constant and anticipated manner. Think, for instance, of the latest upsurge when the price skyrocketed from $450 to $1,350 over December 2017 and January 2018. Now it’s dipping, so many people use this moment to buy up more Ether because it’s highly anticipated to reach at least $2,000 anytime soon.

Long-term

Ethereum’s price is not only contingent on demand and supply like in case of Bitcoin or other cryptocurrencies. Since Ethereum is a network for blockchain applications, the price of Ether also relies upon the development, implementation and of course usage of dApps that run on the Ethereum network. Considering this, as an investor, you have more room for maneuver and more factors that help you predict the direction of where the price is heading and volume of its growth/drop. This is precisely what makes Ethereum a relatively solid investment, comparing with other cryptocurrencies, where it’s all only about demand and supply.

But remember, everything is relative, just like the fact that Ethereum is a solid investment. So, never invest more than you can afford to lose and always research thoroughly before going for something.


Additional Reading/Sources:

Is Ethereum the Next Bitcoin? Is It the Next Big Thing After Bitcoin?

How High Will Ethereum Go? Will Ethereum Reach the Price of Bitcoin?

What Is Ethereum and How to Make Money With Ethereum?

10 Reasons Why You Should Invest in Bitcoin. Is It a Good Time to Buy Bitcoin?

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Why Is It Better to Invest in Ethereum Than in Other Cryptocurrencies?
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Why Is It Better to Invest in Ethereum Than in Other Cryptocurrencies?
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An inflow of inexperienced market participants resulted in high volatility of almost all cryptocurrencies, which in its turn provoked a great recession of the prices. So what’s the best investment choice in 2018? Why it is better to invest in Ethereum than any other cryptocurrencies.
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